As is the case with many asset classes as they mature, bitcoin has drawn more political attention – both negative and positive – in recent years.
Some longtime bitcoin advocates are apt to argue the digital currency becoming a political lightning rod runs counter to its status as a decentralized asset and one positioned as an alternative to traditional fiat money. However, not all the political chatter surrounding Bitcoin and the broader cryptocurrency space is bad. In fact, some of it is downright bullish, and that could have positive implications for exchange traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC).
Democratic presidential candidate Robert F. Kennedy Jr. is a bitcoin supporter, and he’s putting his proverbial money where his mouth is. He recently proposed a plan to eliminate the capital gains tax on bitcoin trades when investors convert sold bitcoin into U.S. dollars. Speaking of the greenback, Kennedy would like to back the currency with real assets, such as gold, platinum, silver, and, yes, bitcoin.
Kennedy Platform Would Be Boon for Bitcoin Adoption
In terms of the longer-ranging impact to bitcoin, BLKC, and SATO, the reality is Kennedy faces an uphill climb to his party’s nomination in the 2024 presidential election. He’s challenging incumbent President Joe Biden. It’s no small task for any challenger to go up against a sitting president on an intraparty basis.
Still, Kennedy’s idea for backing the dollar with real assets can be considered sensible. His enthusiasm for bitcoin could broaden its adoption case.
“Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation, and usher in a new era of American financial stability, peace, and prosperity,” said the candidate at the recent Heal-the-Divide PAC event.
As it pertains to BLKC and SATO, Kennedy can have a positive impact, albeit indirectly. Even if not elected president, he’s calling attention to the utility of the blockchain and the importance of privacy and fostering American innovation.
“The benefits include facilitating innovation and spurring investment, ensuring citizen privacy, incentivizing ventures to grow their business and tech jobs in the United States rather than in Singapore, Switzerland, Germany, and Portugal,” he told the Heal-the-Divide audience.
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